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This study attempts to investigate the J-Curve phenomenon of a developing country for the case of Vietnam and its major trade partners: China and The United State,which are the largest and the second-largest trading partners of Vietnam,respectively.The methodology of this paper is based on cointegration technique,ARDL approach,introduced by Perasan and Shin（1995）and Perasan et al.（1996）using quarterly bilateral data from Q1-1995 to Q4-2018 to investigate the impact of currency depreciation on the bilateral trade balance in the short and the long run.In general,the paper indicates the length of the deterioration of Vietnam’s trade balance through the long-run and short-run relationship between 4 macro variables included the trade balance,real exchange rate,domestic and foreign income.More details,the most important finding of this study is that the depreciation of Vietnam Dong in recent years can be considered as a successful policy for the trade balance improvement of Vietnam.The first,real depreciation of Vietnam Dong improves Vietnam’s trade balance with China and the U.S.after worsening the trade balance in the short run.The second,in the long run,the Vietnam trade balance is improved from a real depreciation of Dong which formed 3.235 per cent and 1.594 per cent of Vietnam’s total trade share with China and The U.S.,respectively.The third,the estimates show that there is evidence of J-Curve phenomenon only in the cases of China,not for The U.S.Additionally,real income of trading partners has positive and significant effect in the long run,that indicates the increase in real income of partners is found to have important role in determining imports from Vietnam.However,there is no significant effect on Vietnam’s real income on the trade balance.Last but not least,the results from diagnostic tests show that the estimated relationships are stable and reliable over the last 24 years.Besides,the study findings would recommend several policy implications to improve the trade balance in Vietnam.